Earnings Mobility of Canadian Immigrants: A Transition Matrix Approach
AbstractThis Study examines the earnings mobility of Canadian immigrants using the large IMDB microdata file. We examine earnings transition matrices of immigrants over ten years after landing in Canada for three landing cohorts â€“ 1982, 1988, and 1994. Immigrants also arrive under four separate admission classes: independent economic, other economic, family class, and refugees. The study reports five major empirical findings. First, overall earnings mobility was slightly greater for male immigrant earners than for male workers as a whole in the Canadian labour market, but was considerably greater for female immigrant earners than for all female earners in Canada. But both male and female immigrants over their first decade in Canada were much more likely to experience downward earnings mobility than were all earners of the same gender in Canada. Second, across the four immigrant admission classes, independent economic immigrants have markedly the highest average probability of moving up and the lowest probability of moving down the earnings distribution. Third, overall earnings mobility is slightly higher for female than male immigrants â€“ opposite to the situation for workers as whole in Canada. Fourth, the degree of immigrant earnings mobility declines over immigrantsâ€™ first ten post-landing years in Canada as they integrate into the Canadian labour market. Fifth, overall earnings mobility across landing cohorts has shown only minor changes between the 1982 and 1994 cohorts, where the average probability of moving up has significantly increased and the average probability of moving down has significantly decreased. The early 1990s economic recession is seen to have had substantial negative or dampening effects on immigrant earnings mobility for the 1988 landing cohort.
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Bibliographic InfoPaper provided by Vancouver School of Economics in its series CLSSRN working papers with number clsrn_admin-2013-47.
Length: 107 pages
Date of creation: 27 Oct 2013
Date of revision: 27 Oct 2013
Contact details of provider:
Web page: http://www.clsrn.econ.ubc.ca/
Immigrant earnings; transition matrices; Canadian immigrants;
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-22 (All new papers)
- NEP-LAB-2013-11-22 (Labour Economics)
- NEP-LMA-2013-11-22 (Labor Markets - Supply, Demand, & Wages)
- NEP-MIG-2013-11-22 (Economics of Human Migration)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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